Ganga Ltd. purchased a machinery on January 01, 2014 for Rs 5,50,000 a

1.	Ganga Ltd. purchased a machinery on January 01, 2014 for Rs 5,50,000 and spent Rs 50,000 on its installation. On September 01, 2014 it purchased another machine for Rs 3,70,000. On May 01, 2016 it purchased another machine for Rs 8,40,000 (including installation expenses).Depreciation was provided on machinery 10% p.a. on original cost method annually on December 31. Prepare:(a) Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.(b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.
Answer» Ganga Ltd. purchased a machinery on January 01, 2014 for Rs 5,50,000 and spent Rs 50,000 on its installation. On September 01, 2014 it purchased another machine for Rs 3,70,000. On May 01, 2016 it purchased another machine for Rs 8,40,000 (including installation expenses). Depreciation was provided on machinery 10% p.a. on original cost method annually on December 31. Prepare: (a) Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017. (b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.

Ganga Ltd. purchased a machinery on January 01, 2014 for Rs 5,50,000 and spent Rs 50,000 on its installation. On September 01, 2014 it purchased another machine for Rs 3,70,000. On May 01, 2016 it purchased another machine for Rs 8,40,000 (including installation expenses).Depreciation was provided on machinery 10% p.a. on original cost method annually on December 31. Prepare:(a) Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.(b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.

Answer»

Ganga Ltd. purchased a machinery on January 01, 2014 for Rs 5,50,000 and spent Rs 50,000 on its installation. On September 01, 2014 it purchased another machine for Rs 3,70,000. On May 01, 2016 it purchased another machine for Rs 8,40,000 (including installation expenses).

Depreciation was provided on machinery 10% p.a. on original cost method annually on December 31. Prepare:

(a) Machinery account and depreciation account for the years 2014, 2015, 2016 and 2017.

(b) If depreciation is accumulated in provision for Depreciation account then prepare machine account and provision for depreciation account for the years 2014, 2015, 2016 and 2017.

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